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Does the renter as well as the owner owe a commission to the real estate agent?

I called about a specific unit, and I rented that unit. I did not intend to engage a buyer's agent.

My agent tells me (after the fact) that my fee is 1 month's rental (3600RM). I had not budgeted for this large amount, and it puts me in an embarrassing and difficult position.

Morally and ethically I feel I should have been made aware in the advertisement of any charges I would incur by by calling an agent about a specific property he had listed.

I feel agents should be required by the real estate board to disclose their charges before potential renters unknowingly incur an unexpected large expense. Not to do so reflects poorly on the real estate profession for open and transparent business dealings.

I was pleased with the agent's service, but not with the way in which I learned about the large financial obligation I seem to have incurred.
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1 Answer

David Wong Lai Kwong
You pay the professional fee if you have hired and contracted the licensed agency to find and secure a property on your behalf. If you have responded to a listing in an advertisement, you are not obligated to pay a fee because the agency representing the owner would have engaged the services of the agency and agreed to pay the fee. For rental, the fee is usually equivalent to 1 month's rent. The Board of Valuers, Appraisers & Estate Agents, Malaysia has regulations to discourage agents from collecting a fee from both parties without the consent and knowledge of the other.
David Wong
Principal
QUANTUM real estate
www.quantumrealestate.com.my Read More
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  • DH
    I have spoken with the real estate agent.

    It turns out that I thought I was signing a receipt for the money I gave him for the first month's rental. Unfortunately included in it was verbiage that said I agreed to pay his fee; therefore I have to pay.

    The agent stated that every real estate dealer in Penang charges both renter and owner. He said this is not the case in KL and alleged that I had posted my question on a KL site. I got to the site by Googling the words, “Property Guru Penang.”

    I told him that were I he, I would want renters to know my charges up front. He would not agree to do so in the future. This nontransparent business practice is deliberate and reprehensible.

    If it is truly the case that all real estate agents in Penang charge both renter and owner, the charges need to be posted and agreed to by the prospective renter before the fact. Not to do so is unethical and in my opinion immoral.

    If the real estate board wants details, I will give them.

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